Farmers Join Hands To Revive Closed Sugarcane Factory; Tender Process Put On Halt

Hundreds of farmers in Morena district have come together to resurrect one of the region's oldest cooperative sugar factories, which was shut down nearly a decade ago, while a section of the Madhya Pradesh government is keen to demolish and sell the factory's metal as scrap.

According to sources, Chief Minister Shivraj Singh Chouhan has consented to reconsider the revival of this factory. The tendering procedure has been halted.

The move has the support of Cooperatives Minister Arvind Bhadoria, Fisheries Minister Tulsiram Silawat, and Public Works Minister Gopal Bhargav.

The tender for 'sale of plant and machinery of Cooperation Department Sugar Mill' at Kailaras in Morena was floated by the public asset management department (PAM) in January this year despite pleas from local farmers and political leaders to revive it, citing the livelihood of 5,000 to 10,000 farmers and their families.

Farmers feel that if there is a plan to revive the factory, they will be willing to forgive the factory's debts. Many of them are concerned that the government would sell the factory land, which may then be used by private individuals for other commercial purposes, as there is a provision for land diversion.

This factory, also known as 'Morena Mandal Sahkari Shakkar Karkhana Ltd,' was founded in 1973. Due to a shortage of sugarcane and working capital, it was forced to close in 2010-11.

Former officials of Kailaras Sugar Mills claim that the factory's obligation of over Rs 35 crore is unjustified. Salary for over 520 workers, Rs 20 crore in Provident Fund, Rs 5 crore to farmers and the Mandi Board, Rs 3 crore to the state government, Central Co-operative Banks and other private institutions, and bank loans are among the outstanding debts.

The factory's so-called junk was set at a base price of Rs 2.78 crore. A former principal secretary of the cooperatives department had written to the then Chambal Divisional Commissioner, requesting that a notice of Expression of Interest be published for operating the Kailaras Mill on a PPP model, but nothing transpired. Any such plans were reported to be scuttled by land mafias.